Spescom - Trading Statement
SPESCOM LIMITED
(Incorporated in the Republic of South Africa)
(Reg No 1987/001083/06)
Share Code: SPS
ISIN: ZAE000017919
(`Spescom`)
TRADING STATEMENT
In terms of paragraph 3.4 (b) of the Listings Requirements of the JSE Securities
Exchange, South Africa (`the JSE Listings Requirements`) a listed company is
required to publish a trading statement as soon as it is satisfied that a
reasonable degree of certainty exists that the financial results for the period
to be reported upon next will differ by at least 20% from those of the previous
corresponding period.
In compliance therewith, the Spescom Board anticipates that the financial
results for the half year, ending 31 March 2005, may incur a headline loss of
between R10m to R14m, compared to headline earnings of R20,6m for the
corresponding period last year.
These expected poor trading results can be attributed directly to the
unpredictability of the telecommunications sector:
Telecomms business is fragmented by nature with trading heavily dependent on
large deals and a small customer base.
Liberalisation of the market has not yet taken place.
The impact of deregulation announcements still remains largely unknown,
particularly with respect to the second network operator.
Delays in the finalisation of long term contracts as well as the awarding of new
contracts.
In the event that the anticipated financial results for the half year ending 31
March 2005 improve prior to the publication of Spescom`s interim results, a
further trading statement will be issued in this regard.
The Spescom Board expects that the results for the second financial half, ending
30 September 2005, will show a distinct improvement.
This forecast has not been reviewed or reported on by Spescom`s auditors. The
release of the interim results for the six month period ending 31 March 2005 is
expected to be published on or about 18 May 2005.
Johannesburg
27 January 2005
Sponsor: Investec Bank Limited
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